NXT Capital Announces the Closing of its Latest ~$1Billion Middle and Lower Middle-Market Direct Lending Fund

Rhea-AI Summary

NXT Capital announced the closing of its Senior Loan Fund VI (SLF VI Levered), which will have approximately $1 billion in capacity from equity commitments and leverage. This Fund enhances NXT Capital’s total assets under management to about $11 billion as of February 28, 2021. The Fund will focus on senior debt transactions, specifically secured loans to middle and lower middle-market companies across various sectors in the U.S. Institutional investors, including pension plans and insurance companies, have committed equity to the Fund.

Positive

• SLF VI Levered adds approximately $1 billion in fund capacity.
• Total assets under management increase to around $11 billion.
• Focus on senior secured loans targeting a diverse range of U.S. companies.

Negative

• None.

NXT Capital, LLC announced today the final closing on NXT Capital Senior Loan Fund VI (L), LP (SLF VI Levered or the Fund). SLF VI Levered will have approximately $1 billion in fund capacity from equity commitments combined with expected leverage. The addition of the Fund increases NXT Capital’s asset management platform to approximately $11 billion in capital under management/direction as of February 28, 2021.

The Fund will invest in senior debt transactions directly originated and underwritten by NXT Capital’s Direct Lending Group. The investment strategy is focused on senior secured loans, including straight senior, stretch and unitranche loans made to sponsor-backed middle and lower middle-market companies across a wide range of industries in the United States.

The Fund received equity commitments from U.S. and foreign institutional investors, including pension plans, insurance companies, foundations and financial institutions.

“I’d like to thank our new and returning investors for their confidence in and support of NXT Capital’s strategy,” said John Finnerty, President, NXT Capital. “Private Equity deal making and NXT Capital’s pipeline have bounced back swiftly since the pause caused by the pandemic, and we are excited about the investment opportunities for this Fund.”

NXT Capital LLC

NXT Capital is a U.S. middle and lower middle-market direct lender providing a full range of structured financing solutions. Our platform offers investors proprietary access to floating rate middle market loans sourced almost exclusively in the primary market. Investment programs include levered and unlevered funds, separately managed accounts and CLOs. NXT Capital is headquartered in Chicago and is a wholly owned subsidiary of ORIX Corporation USA. Advisory services provided by NXT Capital Investment Advisers, LLC, an affiliate of NXT Capital LLC. For more information visit www.nxtcapital.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210311005205/en/

FAQ

What is NXT Capital's new fund announced in March 2021?

NXT Capital announced the closing of its Senior Loan Fund VI (SLF VI Levered) in March 2021.

How much capital does SLF VI Levered have?

SLF VI Levered has approximately $1 billion in fund capacity.

What is NXT Capital's total assets under management after the new fund?

After the closing of SLF VI Levered, NXT Capital's total assets under management reach around $11 billion.

What type of loans will SLF VI Levered invest in?

SLF VI Levered will invest in senior secured loans to sponsor-backed middle and lower middle-market companies.

Who are the investors in NXT Capital's new fund?

The Fund received equity commitments from U.S. and foreign institutional investors including pension plans and insurance companies.